What is CMDportal?
CMDportal is a London based FinTech company that manages a Collaborative Market Data Network of well over 26,500 bond and money market professionals. The Network connects issuers with dealers and investors of fixed income instruments globally and provides transparency through trade and flow reports to the market.
Furthermore, the company acts as a data clearing, validation and reconciliation agent ensuring the highest quality of ISIN (International Securities Identification Number) and LEI (Legal Entity Identifier) Reference Data for market participants and has well over 15 million ISIN to LEI matches.
In April 2016, the company announced the launch of an Indications of Interest system for bond market private placements.
Why collaborate on Reference Data?
Managing ISIN and LEI Reference Data is a humongous task that is impossible to do without massive resources. It is NOT a problem that can be tackled simply just by having good technology. Preparing reference data for downstream consumption is a complex matter with often-massive unpredictable costs. As a result, more and more firms are looking at opportunities for adopting a shared service to improve operational efficiencies, reduce risk and meet customer expectations. In fact, it makes absolutely no financial sense to address the many aspects of reference data management internally when the same data can be supplied by a shared services provider. Investing in an internal project not only means paying for all the changes that need to be made immediately, but also for those changes that need to be made at a later stage, f.e. to meet ongoing regulatory requirements. Doing it inhouse means, there are no benefits that come from sharing these costs within a one to many cost-efficient solution. A collaborative data management can be more pro-active in incorporating new data categories and accessing additional data sources to accommodate requirements for multiple clients.
Why is managing Reference Data so difficult?
Despite the notion that a reference normally refers to something static, LEI and ISIN reference data is in fact far from static. Legal Entities change and so do financial instruments throughout the life cycle of their existence. Much has been achieved in the world of corporate actions but still is no single source for finding correct data.
What are the strengths of a Collaborative Market Data Network?
If the world could go back to having just one provider that aggregates, normalizes and enriches data for all market participants the reference data management problem would resolve itself over time. Such a solution would help to eliminate every firm repeating the same mistakes internally. After all, there is very little to no competitive advantage in getting reference data correct. There is however tremendous downside risk in getting it wrong.
A dynamic network that applies incentives for data management can create a powerful solution to solve the reference data management conundrum. As more and more market participants work off one data source, the problem gradually disappears. The cost advantages of the one-to-many reference data management model are hard to ignore in an environment where financial market participants have to count beans and pennies to succeed.
What created the Reference Data Management Problem?
Originally when there was just one source there was no problem. As sources increased, financial services companies turned to investing in IT projects. As more sources and more demands for accurate data were made, these IT projects became more large-scale and strategic aimed at delivering enterprise-wide master data sets. It seemed the best way to fix the data quality issue.
As a result the world learned to live with multiple data sources, asset managers, investment banks and other users of financial market data sought to manage their needs for good quality data by using enterprise data quality management and other systems. When sources increased further and management became more costly some sought to outsource their tasks to third parties in off shore centres, but even this has its limitations of high fixed costs, high running costs and growing implementation risks. Increasingly technology budgets are stretched not just to manage the complexity of data management, but also to comply with new regulations. More than ever before it has become important to look at an alternative operating model to solve the ISIN and LEI Reference Data Management problem.
What makes CMDportal unique?
CMDportal is uniquely positioned to solve the Reference Data Management problem because it is fully independent and unique in applying algorithmic solutions that ensure top quality data management thoughout the life cycle of both the financial instrument as well as the entity that issued the instrument. Outsourcing and offshoring models, despite labour cost arbitrage, cannot compete with a one-to-many collaborative data model. A collaborative data management solution allows participants to benefit from improvements suggested by peers. Increasingly this solution is not only seen as being more predictable when it comes to quality and costs, but also more flexible when it comes to selecting what data to source. At CMDportal we have over 14 years of experience in data aggregation and do so from well over 100 different data sources from both the intermediating, asset management and clearing and settlement environments.
What we offer:
- Network: Whether you are investing, issuing, originating, syndicating, structuring, trading or dealing in bonds or money market instruments our services will come in handy when working in these markets globally.
- Data: Over 15.8million fixed income bonds, notes, medium term notes, commercial paper, certificates of deposit, government bills, covered bonds, billets de tresorie, corporate bonds, obligaciones, obligationen, schuldverschreibungen, municipal bonds, private placement, uridashi, samurai, schuldschein; there are no restrictions on the type of instruments that our data model can handle.
- DataWiki: We are a collaborative market data network ensuring the highest quality of global fixed income vanilla and structured product Bond and Money Market Data.
- Bond Market Dictionary: Our Data Dictionary explains our fields and attributes.
- LEI Mapping Service: We have developed extensive LEI mapping tools and will be happy to map your entity ID list to LEIs. For more information: www.isinlei.com
- FTP Data Feeds: tailored fixed income data feeds complete with Legal Entity Identifiers.
- Value Feed: VNAV and other fixed income and structured product valuation services.
- Outstanding Feed: tailored issuer by issuer / LEI outstanding debt data to assist asset managers calculate concentration risks.
- League Tables: Over 100 institutions contribute to our league tables every day. Click here to see the latest.
- Event Promoter: we operate a global fixed income market event calendar. Anyone with an event focused on fixed income markets can post. Click here to see the latest.
- Research: Subscribing to CMDportal gives you access to the following:
- CPdaily: This is a dedicated Flow and Data Service covering international and
domestic Money Markets. For anyone who needs to know "Money Markets",
contact us for a free trial. This product covers: Commercial Paper, Certificates of Deposit and other money market products.
- Bonddaily: This is a dedicated Flow and Data Service on international Syndicated
Bond Markets. This product covers: SSA Bonds, FIG Bonds, Corporate
Bonds, High Yield Bonds, Green Bonds, Municipal Bonds, Covered Bonds,
Yen Bonds. Contact us for a free trial.
- MTNdaily: This is a dedicated Flow and Data Service on international EMTN, Medium
Term Notes, Private Placement and Structured Product Markets. For anyone
who needs to know about third party private placments, contact us for a
free trial. This product covers; Fixed Rate Bonds, Floating Rate Notes, Zero Coupon Notes, Interest Rate linked Notes, Equity Linked Notes, FX Linked Notes, Commodity Linked Notes, Credit Linked Notes, and Inflation Linkers.
All of our products are encrypted and hosted in a secure environment. They can be deployed as a standalone solution or be fully integrated into your core architecture. Cloud deployment ensures fast implementation with minimum cost, on-going support and upgrades. In addition, all of the data centers we use are secure and are ISO standards 27001 and 9001 compliant.